Nifty 50 August Futures (19,300)
Nifty 50 and Sensex are continuing to trade under pressure. Both the indices are down over 0.4 per cent today. Sensex is trading at 64,874 and Nifty is at 19,279.
Nifty has declined below the key support level of 19,300. This keeps intact our near-term bearish view of seeing a fall to 19,100-19,000. The price action around 19,000 will then need a close watch to see if the Nifty is reversing higher again or not.
Global indices
Most of the major Asian indices are trading lower following the sharp fall in the U.S. equities overnight. Hang Seng (18,121) is down over a per cent while Nikkei 225 (31,449) and Kospi (2,504) are down about 0.6 per cent each. Shanghai Composite (3,161) is flat.
In the U.S., the Dow Jones Industrial Average (34,474.93) has declined sharply breaking below the support at 34,700. The fall to 34,500 has also happened. There is limited room left of the downside. The region around 34,100-34,000 is a very strong support zone. The Dow Jones is likely to see a fresh rally from the 34,100-34,000 region going forward.
Nifty 50 Futures
Nifty 50 August Futures (19,300) is down about 0.5 per cent. A low of 19,280 has been made so far. The fall to 19,250 mentioned yesterday has almost happened.
An important support is around 19,270. If that holds, we can get a relief rally to 19,350-19,370 during the day. In case the contract breaks below 19,270, a sharp fall to 19,000 is possible. As such the price action around 19,270 will need a close watch.
Trade Strategy
Since there is a chance for a bounce form around 19,270, we suggest traders to stay out of the market today. See how the market closes for the week today and get a clarity on the next. Trades can then be taken accordingly next week.